East Lyme ― First Selectman Kevin Seery this week said more and more properties are being bought up by private companies for daily, weekend and weekly rentals, resulting in noise, garbage and parking problems in the town’s beach communities.

The Board of Selectmen at its Wednesday meeting decided to take a closer look at short-term rentals (STR) popularized by internet sites such as Airbnb and VRBO. Members recommended forming a committee of officials and volunteers to look into “possibly implementing policies regulating the STR industry.”

Selectmen agreed to ask town attorney Mark Zamarka of the New London-based Waller, Smith and Palmer firm to define the role of the committee and decide how many people should be on it.

Seery after the meeting said his goal is to appoint committee members at the Aug. 2 selectmen's meeting. The group will likely consist of five to seven people, including one selectman, a member of the Zoning Commission and several residents. He pointed to zoning enforcement officer Bill Mulholland and building official David Garside as committee liaisons.

Mulholland this week said the town has not yet taken an official position on short-term rentals. Instead, he goes by the zoning dictate that anything not explicitly allowed in zoning regulations is prohibited.

The zoning official said he has communicated in the past with people renting out their homes on a short-term basis as complaints arose. But outside of those complaints, he has not actively pursued violations. He cited limited staff time in a department that includes himself and two administrative assistants.

He said his definition for short-term rentals comes from the state tax code, which identifies “short” stays as fewer than 30 days.

More than a half dozen beach communities in town are empowered by the state to devise their own zoning regulations. Seery said the Crescent Beach, Black Point and Giants Neck beach communities have zoning regulations allowing short term rentals.

Both Mulholland and Seery said they’ve heard from people who want to offer short-term rentals and those who are opposed to them.

Seery said the complaints are coming from areas where short-term stays are not allowed and therefore not regulated.

“They just want to be sure there’s some type of oversight,” he said.

The first selectman emphasized the importance of engaging the community in the process.

“Stonington tried to do an ordinance. It didn't go well. They didn’t really get a lot of buy-in,” he said.

Stonington’s proposed short-term rental ordinance failed at a March referendum by a vote of 694-342. The proposal would have required owners to register their rental property with the town, conform to local safety regulations and provide certain information to renters.

In Noank, where Mulholland works one night per week as the zoning enforcement officer, the Zoning Commission in August 2021 voted 5-0 to enforce a prohibition on short-term rentals on the grounds that uses not explicitly allowed in zoning regulations are prohibited.

Lyme, Ledyard and Preston are among the local towns that regulate short-term rentals.

‘Thorny’ area of law

Proponents characterize short-term rentals as an economic boon from visitors who eat at local restaurants and shop in the stores. Opponents argue renters often take up limited parking spaces, make excessive amounts of noise and leave garbage in their wake.

Critics of short-term rentals also say that more houses being used as short-term rentals leaves fewer permanent housing options, driving up home prices in a climate in which demand already outstrips supply.

Zamarka, the town attorney, told selectmen that handling issues related to short-term rentals is an “extremely thorny” area of law that’s still developing. He cited a recent state Appellate Court decision billed as the first to address the local regulation of such rentals. The case involved a zoning enforcement officer's order directing a homeowner to stop using his property located within a Branford beach association as a short-term rental.

The court in that case determined that if a municipality has deemed it acceptable for a single-family home to be rented out for any length of time, then it is acceptable to rent it out for short stays as well.

A report from the Southeastern Connecticut Council of Governments updated in 2021 pointed to two primary mechanisms for addressing short-term rental regulations: either updating zoning regulations or adopting a town ordinance. Going the zoning route means a commission can target certain areas specifically and can review site plans to ensure compliance. Making a town-wide ordinance allows the town to set up a licensing framework and could empower law enforcement to address complaints, according to the report.

Zamarka recommended that the committee, if formed, consider the ordinance approach that could be applied town wide and include the beach communities.

Examples of ways to control short-term rentals mentioned in the report include limiting the total number of short-term rentals in town, allowing them only at primary residences, limiting how many nights each home can be rented, limiting the number of guests and requiring adequate off-street parking.

Making a profit

Debbie Jett-Harris, who lives in one of 155 houses in the Pine Grove neighborhood, serves on the beach association’s board of governors. She is also a member of the East Lyme Zoning Commission.

She said in a phone call Thursday she objects to the idea of an ordinance that could trump the rules set by her beach association.

Pine Grove, one of the communities allowed by the state to tax its residents, assessed a tax of 0.88 mills in the last fiscal year. That’s in addition to taxes levied by the town of East Lyme.

“Once you tax people, you have rules and regulations and bylaws that you have to follow,” she said.

The association’s practice is not to allow rentals shorter than 30 days, according to Jett-Harris. She cited extensive efforts back in 2018 to ensure a homeowner was not allowed to rent his place on a short-term basis to people the association considered disruptive to the small, tightly packed community.

“It is a profit-making business,” she said. “They don’t belong in residential communities.”

She said the short-term business model is different from the longer term “academic rental” scenario popular in the area. That’s when homeowners take up residence for the summer while tenants move in for the rest of the year.

At Wednesday’s selectmen’s meeting, member Rose Ann Hardy likened short-term rentals to hotels.

“Isn’t the definition of a hotel where you stay one night or two nights and then you leave?” she said. “I don’t want a different group of individuals living next door to me, who I don’t know, coming and going every day.”

But Selectman Bill Weber questioned the town’s ability to prevent short stays in the current administrative and legal framework.

“I don’t think we can stop it,” he said. “We’re hearing the Appellate Court already said you can’t just say no.”

Seery agreed.

“Since we can’t say no, I think there’s ways to look at it and intelligently regulate it, where people can be held accountable,” he said.

Seery estimated a roughly 60- to 90-day period for the committee to do its work before making its recommendation. The Board of Selectmen must hold a public hearing before voting to enact any ordinance.

e.regan@theday.com